As uncertainty increases about where the global economy is headed and whispers grow about a “double-dip,” spare a thought for Lesotho.
A small developing country (population less than 2 million), Lesotho is located in one of the most resource-poor parts of Southern Africa. Around 37% of households live on less than $1/day and about half are below the national poverty line. As a small and relatively undiversified economy, heavily dependent on foreign markets, Lesotho is very vulnerable to shocks. It is also ill-equipped to deal with them.